Ramkrishna Forgings Reports Strong Q1 FY27 Performance with 19.8% Revenue Growth; Profitability Improves on Better Business Mix

What Happened ?

key details

Business Performance:

• Consolidated revenue increased to ₹1,217 crore, up 19.8% YoY.
• Domestic revenue rose 20.3% YoY to ₹735 crore.
• Export revenue increased 11% YoY to ₹354 crore.
• EBITDA margin improved to 17.96% from 14.64% last year.
• Profit Before Tax nearly tripled on a year-on-year basis.
• Improved operating leverage contributed to higher profitability.

Order Wins:

• New orders worth ₹293 crore secured during Q1 FY27.
• ₹278 crore orders came from the automobile segment.
• ₹15 crore orders were won from the Indian Railways metro segment.
• Around 82% of automotive orders relate to passenger vehicles.
• Remaining 18% are from the two-wheeler segment.
• The order mix supports the company’s ongoing diversification strategy.

Operational Performance:

• Forging volumes increased 4% YoY.
• Casting volumes surged 84.8% YoY, reflecting successful scaling of new capacity.
• Export realizations improved to ₹2.42 lakh per tonne.
• Domestic realization also remained healthy despite changing product mix.
• Capacity expansion completed during FY26 continues supporting higher production capability. 

Capacity Expansion & Utilisation:

• Total installed manufacturing capacity stands at 395,800 MT.
• Total production during Q1 FY27 reached 66,894 MT.
• Overall capacity utilisation stood at 68%.
• Additional forging press capacity of 43,000 MT and casting capacity of 28,800 MT commissioned during FY26.
• Casting operations continue ramping up following recent expansion. 

Business Diversification:

• Domestic business contributed 67.7% of Q1 FY27 revenue.
• Export business accounted for 32.3% of revenue.
• Passenger vehicles remain the largest revenue contributor.
• Railways, mining, earthmoving equipment and industrial applications continue gaining share.
• North America remained the largest export market, followed by Europe.
• Management is building capabilities in non-ferrous forgings for aerospace and semiconductor industries. 

Note

• The company’s revenue mix continues shifting towards higher-value industrial applications while reducing dependence on any single end-user industry, supporting more balanced long-term growth. 

Risk Analysis

Summary:

• While Ramkrishna Forgings has demonstrated strong operational momentum, sustained growth remains dependent on demand across commercial vehicles, exports, industrial sectors, and successful utilisation of newly added capacities.

Key Risks:

• Demand slowdown in automotive markets could affect order inflow.
• Export demand remains sensitive to global economic conditions.
• New capacity ramp-up must maintain utilisation to protect margins.
• Commodity price volatility may impact profitability.
• Continued diversification into newer sectors requires successful execution. 

Worst Case:

• A slowdown in domestic vehicle production or weaker global industrial demand could reduce capacity utilisation and moderate earnings growth despite recent capacity additions.

Risk Level: Medium

Company Commentary

• Management reported a strong start to FY27 with improving business momentum across domestic and international markets.
• Better operating leverage and improved business mix enhanced profitability.
• Commercial vehicles remain resilient while railways, mining, oil & gas and industrial segments continue scaling up.
• Casting operations and expanded product offerings are broadening the company’s growth platform.
• Ramkrishna Forgings is actively developing its portfolio in non-ferrous forgings for aerospace and semiconductor industries.
• Management remains optimistic about sustained long-term growth driven by domestic demand, export recovery, expanded capacity, and diversification initiatives.